Category: Corporate Relocation

Categories
Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Global Mobility Global Relocation Global Relocation Tips Global Relocation Trends Household Goods Relocation Best Practices Relocation Management

Relocation Models for 5 Major Industries

Amazing London skyline with Tower Bridge during sunset

Traditional vs. Lump Sum Relocation Programs

Which is best model for your company?

There is more than one way to get your relocating employees to their new assignments. Many companies opt for either a traditional relocation program, a lump sum/managed cap program, or a combination of the two, depending on the position of the transferee and other special circumstances.

What are the Differences?

With a lump sum or managed cap model, relocating employees are given a pre-determined amount of money to cover all aspects of their move. From the shipping of goods to temporary housing, the transferees are responsible for researching and obtaining all the services needed to get them to their new destinations. There is no tracking or reporting available to HR or finance departments to let them know whether their relocation policies are too generous, costing the company more money than necessary to relocate their employees, or too limited, forcing transferees to pay out of pocket unnecessarily. This approach leaves the entire move is managed by the transferees, many who might not have any prior moving experience.

Conversely, a traditional relocation model is managed by a relocation management company (RMC). The RMC coordinates everything for the transferees. This includes, but is not limited to, home selling, household goods movement, temporary living, and home purchasing. The RMC sets up the various services with reputable, vetted network partners. Since the RMCs use direct billing back to the client companies, the transferees rarely have to open their wallets. HR and finance departments receive detailed expense reports from the RMCs that capture all the costs related to relocating their transferees.

Based on comprehensive relocation surveys, here are findings of how companies in five different industries utilize either traditional, managed cap/lump sum, or a combination of these relocation programs:

Relocation Models by Industry: Energy, Healthcare/Medical, Manufacturing, Retail, Technology

The figures above illustrate that across all the industries in this survey, traditional relocation programs are used more frequently than lump sum or managed cap programs. However, in all the industries, there is a large percentage of companies that utilize a combined approach. A best practice consideration is to adopt a combination of traditional and managed cap relocation models.

Modern Mobility Made Easy™
Helping you manage your relocating employees

Global Mobility Solutions, an innovative leader in corporate relocations since 1987, can analyze and create mobility management programs customized for your unique needs. Additionally, we have compiled benchmarking studies and relocation best practices for numerous industries. To learn more about what type of relocation model would fit best with your company, get the full relocation benchmarking study for your specific industry:

Download your industry benchmarking study

Categories
Corporate Relocation Domestic Relocation Global Mobility Global Relocation Relocation Management

Global Mobility Solutions Expands Headquarters

Phoenix Arizona city skyline at dusk, showing a beautiful city destination for companies considering a 2020 Phoenix Relocation

Scottsdale Mayor kicks off the headquarters expansion celebration

Headquarters Expansion – Global Mobility Solutions (GMS), a leader in corporate relocation solutions and technology, held an Open House Wednesday, September 20th, to celebrate its headquarters expansion.

The Open House ran from 3:00 pm to 5:00 pm and Guest of Honor was Jim Lane, the Mayor of Scottsdale, performed a ribbon-cutting ceremony to officially commemorate the new office.

Global Mobility Solutions ribbon-cutting ceremony. (From left to right) Rich Ganley, GMS Founder and Board Member; Steven Wester, GMS President and Board Member; Jim Lane, Mayor of Scottsdale; Mark Hiegel, President and CEO of Scottsdale Chamber of Commerce; Steve Ziomek, GMS Founder, Designated Broker, and Board Member.
Global Mobility Solutions ribbon-cutting ceremony. (From left to right) Rich Ganley, GMS Founder and Board Member; Steven Wester, GMS President and Board Member; Jim Lane, Mayor of Scottsdale; Mark Hiegel, President and CEO of Scottsdale Chamber of Commerce; Steve Ziomek, GMS Founder, Designated Broker, and Board Member.

GMS president, Steven Wester, praised his staff and network partners for their role in the expansion, and stated that the company shows no sign of slowing its growth.

“This is a big milestone for Global Mobility Solution. Not only are we celebrating our thirtieth anniversary this year, but to expand by fifty percent is a testament to all our wonderful employees.” Mr. Wester continued, “This growth is also attributed to innovative technology solutions and our strong client partnerships.”

Mayor Lane stated, “It’s always great to see success here in Scottsdale.” The Mayor reminisced, “In this particular case, thirty years ago, I had a consulting company and these guys were my clients. So,” said the smiling Mayor, “I take a little bit of responsibility for their success.”

Mark Hiegel, President and CEO of the Scottsdale Chamber of Commerce, also provided some words of congratulations before Mr. Wester invited the guests to tour the office and enjoy the food and beverages.

This event provided an excellent opportunity for clients and network partners to meet the individuals with whom they do business, and for neighboring companies to learn about Global Mobility Solutions.

About Global Mobility Solutions

Founded in 1987, Global Mobility Solutions is a relocation management company that specializes in supplier management and relocation program development. The company’s relocation services include global assignment management and domestic relocation management, as well as a range of pre-decision solutions and relocation technology applications. To learn more about how Global Mobility Solutions can help you with your relocation management, contact us now.

 

Categories
Corporate Relocation Global Mobility Global Relocation Global Relocation Challenges Global Relocation Trends Relocation Challenges Relocation Management Visas and International Travel

Germany Implements ICT Directive

Shot of a mature businessman having a brainstorming session against a glass screen in a modern office

Will you or your transferees be affected?

What has changed?

Effective immediately, Germany Implements ICT Directive – the German parliament has implemented an ICT Directive which intends to regulate the conditions for entry and residence of thirty-country nationals within the intra-company transfer (ICT) process.

Who is affected?

  • Employees working at the same group of companies for at least six (6) months being sent to Germany on an intra-company transfer
  • Employees working at the same group of companies for less than six (6) months intending to be sent to Germany on an intra-company transfer
  • Clients transferring employees to the same group of companies from another EU country to Germany

What to expect

The ICT Directive provides two different categories: firstly, third-country nationals who want to enter Germany directly from their home country (third-country); secondly, third-country nationals who already hold an ICT residence permit in another European Union (EU) Member State and are transferred to Germany for short or long-term transfer within the same group of companies.

The law divides it as follows:

1) ICT card for intra-company transferred workers (third-country nationals) must fulfill the following requirements:

  • Transfer must take place within the same company group
  • The employee must be either a leader (e.g. manager with leading function) or a specialist
  • Employee must have been with the company for at least six (6) months
  • The transfer must be for more than ninety (90) days, but cannot exceed three (3) years
  • An approval from the Federal Employment Agency must be obtained in advance
  • For the duration of the transfer, the assignee must have a valid assignment contract with his/her home employer and return to the home entity after the transfer
  • The remuneration (salary and monetary benefits) and working conditions (working time, leave, wage advancement in case of illness, etc.) must be comparable with a local employee

2a) Short-term mobility for intra-company workers (third-country nationals) must fulfill the following requirements:

  • Application in Germany up to ninety (90) days within 180 days
  • The assignee has a valid residence permit issued by another EU Member State pursuant to the ICT Directive
  • Proof that the domestic branch office belongs to the same company/group
  • Must have a valid passport
  • Confirmation on the entitlement to enter and residence for the purpose of intra-company transfer issued by the Federal Office for Migration and Refugees (Bundesamt für Migration und Flüchtlinge BAMF)

2b) Mobile ICT Card must fulfill the following requirements:

  • Transfer must take place within the same company/company group
  • The assignee must either be a leader (e.g. manager with a leading function) or a specialist
  • The assignee has a valid residence permit issued by another EU Member State according to the ICT Directive
  • The transfer is for more than ninety (90) days
  • An approval from the Federal Employment Agency must be obtained in advance
  • For the duration of the transfer, the assignee must have a valid assignment contract with his/her home employer and return to the home entity after the transfer
  • The remuneration (salary and monetary benefits) and working conditions (working time, leave, wage advancement in case of illness, etc.) must be comparable with a local employee

If the application was submitted at least twenty (20) days before the start date of the assignment and the assignment has already been submitted to the authorities of the other EU Member State on the first application, the stay and assignment in Germany will be allowed for a period of up to ninety (90) days before the decision was made by the German authorities.

Please note there will be a period of transition as Germany Implements ICT Directive and the authorities will need some time to get use to the new process. We anticipate having more details on the practical implementation and application procedures to share with you in the near future.

 

Modern Mobility Made Easy™

Planning ahead

To learn more about Germany Implements ICT Directive or any other issues that affect you or your mobile employees, be sure to speak with one of the Global Consultants at Global Mobility Solutions. From pre-decision to visa and immigration to language and cultural training, GMS has the award-winning programs and innovative technology to make relocating your employees and tracking their expenses simple and worry-free.

Request your complimentary Visa Program Assessment

Provided by Global Mobility Solutions network partner Emigra World News

Categories
Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Tips Global Mobility Global Relocation Global Relocation Tips Relocation Best Practices Relocation Management

The Real Truth: Managed Cap vs. Lump Sum

Managed Cap vs Lump Sum – Key Things You Need to Consider

As a mobility manager, lump sum payments might seem like the fastest and easiest method of providing your employees with the funds they need to move. However, when looking at managed cap vs lump sum, lump sum payments come with their own unique set of problems. Some of the challenges include:

  • Transferees often left alone in the relocation process
  • No cost controls and often budgetary overages
  • Limited process or service structure
  • Non-taxable benefits are lost
  • Frustrated transferees mean elevated HR involvement and escalations

Fortunately, a managed cap program alleviates many of the problems associated with a lump sum. It also provides:

  • The desired simplicity and predictability of a lump sum program
  • Enhanced employee tax benefits, resulting in more dollars for relocation.

Let’s see the difference between a $15,000 lump sum payment and the same $15,000 from a managed cap program:

GMS-Managed-Cap-vs-Lump-Sum-Chart

A Winning Scenario

The Managed Cap Program provides the transferee with $4,351 more for relocation services!

 

Modern Mobility Made Easy™

What this means for you and your relocating employees

A Managed Cap program will ensure that your transferees get the most out of their relocation dollars and that you will reduce the amount of administrative burden dealing with exceptions. Global Mobility Solutions – a leader in mobility management since 1987 – has expert relocation consultants who understand how a Managed Cap program can benefit you and your company. Contact Global Mobility Solutions and learn how we can quickly implement a managed cap program custom-tailored for your needs. Request your complimentary managed cap program demo to see how much you can be saving.

Request-a-Demo

Categories
Corporate Relocation Domestic Relocation Domestic Relocation Trends

50 U.S. Cities with the Most New Jobs

Portland Oregon in spring. A snow covered Mt hood in the background

Big opportunities in relatively small towns. 

With unemployment near a ten-year low and new jobs surpassing monthly expectations, one might be wondering, “Where are all of these opportunities, what are the 50 US cities with the most jobs?”

In an article for msn.com this July, writer Michael B. Sauter composed a comprehensive list of the top 50 cities for job growth in the United States. The data was tracked from 2012 through 2017 and details the percentage of employment increase, the number of new jobs, the industry (excluding agriculture) contributing most to the growth in opportunities, as well as other key factors.

The top ten cities experienced job growth from 18% to over 30%. Here is a sampling of the top ten cities from Mr. Sauter’s article:

TOP-GROWTH-CITIES-2012-2017

Not surprising, early 50% of the cities on the comprehensive list were from states that have the highest inbound relocation activity1. Fort Myers, FL earned the number one spot on a list of the top U.S. cities for relocation, as posted by US News & World Report.

 

Modern Mobility Made Easy™

What this means for you and your relocating employees

 

Global Mobility Solutions (GMS) has destination spotlights for many of the cities mentioned in the overall list. These spotlights contain information about a city’s climate, geography, transportation, entertainment, culture, sports, schools, and more. GMS spotlights are great tools for helping mobility managers explain the benefits of a relocation assignment and for transferees to become accustomed to an area before actually moving there.

Destination-Spotlights-Button

  1. Miami Herald, January 5, 2017
Categories
Corporate Relocation Domestic Relocation Domestic Relocation Trends

Top U.S. Cities for Relocation

\A Trend Toward High Temperatures and Low Cost of Living

There was a time when the bright lights of huge coastal metropolises like New York and Los Angeles attracted hordes of people seeking employment. However, today’s relocating employees are drawn to lower-cost markets – especially in the southeastern states.

According to US News & World Report, the majority of 2016 relocations went to Florida, Texas, and North Carolina. Half of the top-ten list of cities from US News & World Report is comprised of cities from the “Sunshine State.” Not surprisingly, when comparing the cost of living in New York City to that of Ft. Myers, Florida, it is easy to see the savings that can be realized by both residents and businesses. Compared to Ft. Myers, New York has consumer prices that are 40.75% higher, average rent that is 225.70% higher, and grocery prices that are 30.95% higher(1). The median home purchase price in New York is $825,000 ($1,728,950 in Manhattan), while it is only $247,000 in Ft. Myers(2). Lastly, utility costs and transportation expenses in the Big Apple are 37% higher and 24% higher respectively than the costs in Ft. Myers(3).

Here are the complete lists of the top US relocation destinations in 2016:

US News & World Report Top Cities

  1. Fort Myers, FL
  2. Sarasota, FL
  3. Austin, TX
  4. Orlando, FL
  5. Charleston, SC
  6. Daytona Beach, FL
  7. Houston, TX
  8. San Antonio, TX
  9. Lakeland, FL
  10. Raleigh/Durham, NC

Forbes Top Cities

  1. Tampa, FL
  2. Jacksonville, FL
  3. Charlotte, NC
  4. San Antonio, TX
  5. Austin, TX
  6. Las Vegas, NV
  7. Orlando, FL
  8. Nashville, TN
  9. Raleigh, NC
  10. Portland, OR

At Global Mobility Solutions (GMS), we see this trend in action. In 2016, roughly one third of all our relocations were to the Top US Cities in southeastern and southwestern states.

If you are thinking about relocating to another destination, request your complimentary city-to-city cost comparison. This free report will detail the cost of living expenses of any two locations of your choosing. Learn before you leap.

Request your Complimentary City 2 City Comparison now!

Sources:
1. http://www.numbeo.com, accessed 06/30/2017
2. http://www.zillow.com, accessed 06/30/2017
3. http://www.areavibes.com, accessed 06/30/2017

Categories
Corporate Relocation Domestic Relocation Domestic Relocation Trends Global Mobility Global Relocation Global Relocation Trends Relocation Best Practices

Global Mobility Solutions Named a Top Relocation Company

Phoenix Arizona city skyline at dusk, showing a beautiful city destination for companies considering a 2020 Phoenix Relocation

Global Mobility Solutions (GMS) is proud to be recognized by HRO Today as a top relocation company for the fourth year in a row. Every year, HRO Today compiles customer surveys and other data to produce their Baker’s Dozen list of the best relocation companies.

HRO Today’s Baker’s Dozen rankings are based solely on feedback from buyers of the rated services; the ratings are not based on the opinion of the HRO Today staff. Feedback is collected annually through an online survey, which is distributed both directly to buyers through HRO Today’s own mailing lists and indirectly by sending service providers the link to send to their clients. Overall ranking is determined by analyzing the results across three subcategories: features breadth, deal sizes, and quality. Using a predetermined algorithm that weighs questions and categories based on importance, HRO Today calculates scores in all three subcategories as well as an overall score. The rankings are based on those scores.

The fact that our customers continually place GMS into the Baker’s Dozen list of top relocation companies speaks volumes with regard to our outstanding service, our breadth of programs, and the value that we bring to our clients.

To see how GMS can make your life with regard to workforce mobility easier, simply ask for a complimentary relocation policy review and our expert consultants will discuss how to improve acceptance rates, make assignments more successful, and make the whole process more cost-efficient.

Get your complimentary Relocation Policy Review today!

Categories
Corporate Relocation Domestic Relocation Global Mobility Global Relocation Relocation Management

Global Mobility Solutions Celebrates 30 Years of Relocation Success

A scene from Downtown Scottsdale at dusk with a canal and reflections in the foreground. Scottsdale is part of the Phoenix Metropolitan area.

Founded in 1987, Global Mobility Solutions (GMS) has been providing companies around the world with an array of innovative domestic and global relocation services. In the past thirty years, GMS has helped nearly 240,000 transferees for many companies in a variety of industries.

GMS has always been a leader in the relocation industry. From being the first to pioneer and perfect pre-decision programs to developing cutting edge online relocation tools, GMS is continually recognized for its breadth of solutions and world-class customer service by both clients and independent entities. GMS has been named to HRO Today’s “Baker’s Dozen” as one of relocation companies in satisfaction, quality and breadth of services for four years in a row. GMS has also recently been recognized as a 2017 LEAD Award winner for being both a top 10 company in the “Best Sales Leadership Program” category and a top 20 company in the “Best Global Leadership Program” category.

While GMS has been growing steadily since 1987, the company still places a high priority on giving back to the community. Working with its main charity, Move for Hunger, GMS helps donate food and money to local charities. GMS and its service partners donated have donated over 7,000,000 pounds of food, delivered to food banks across North America.

Categories
Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Relocation Best Practices Relocation Challenges Relocation Management

Managing Mobility Costs

Businesspeople in a meeting

Department heads all over the globe are constantly asked to identify cost-saving opportunities within their departments. Human resources, employee mobility, talent acquisition, and procurement are no exceptions. As you scrutinize your budget, try utilizing these three steps to help better manage and ultimately reduce your relocation expenses:

Cost Estimates

Managing mobility costs starts with understanding what those expenses are. First estimate what costs should be involved with your vision of a successful mobility program. A cost estimate will provide you with a clear picture of the potential costs of individual relocation assignments. You can then use these cost estimates to correctly establish a budget prior to initiating any relocations.

One effective way to determine your cost estimates is by utilizing cost estimate technology. There are many software programs that by using the latest upgrades will help you:

  • Save time
  • Reduce human error
  • Ensure compliance

Policy Reviews

By reviewing your relocation policies, either internally or with an outside relocation management company (RMC), you will be able to identify cost-saving opportunities and eliminate expensive exceptions. When reviewing your mobility management policies, you should:

  • Do so in conjunction with cost
  • Benchmark against other companies within your industry
  • Leverage technology for key services (i.e. Virtual destination tours, online school reports, etc.)

Example:

Using online language tools can reduce relocation costs by roughly $5,000 - $20,000.

Tracking and Reporting

Lastly, you want to ensure that you are continuously tracking all expenses and reporting any overages or savings. Get a detailed account of how your cost estimates match up with your actual spending. Then the whole process repeats itself. Once you have your data:

  • Take action – Make any necessary adjustments to your budget, policy, or both
  • Review – Go over the detailed reports to identify more cost-saving opportunities
  • Incorporate technology – Save time and money by offering key services online

Global Mobility Solutions (GMS) is an award-winning RMC and, since 1987, has been helping companies save time and money with regard to their corporate relocations. As a courtesy service, GMS will review your current relocation policies and provide expert feedback to ensure that your policies are competitive within your industry and to identify any cost-saving opportunities, so you can focus on managing mobility costs.

Click here for your free relocation policy review

Categories
Corporate Relocation Domestic Relocation Domestic Relocation Tips

Best Places for Business in the U.S.

A close  look at “The Best Places for Business in the U.S.”

Why should you be interested in the best places for business in the United States? On January 3, 2017, Mark Fields, CEO of Ford Motor Company, talked about how Ford was scrapping plans to build a $1.6 billion manufacturing plant in Mexico and instead was going to be investing $700 million into a facility in Detroit. The move would not only save existing jobs in Michigan, but add 700 new ones. Fields stated, “This is a vote of confidence for President-Elect Trump and some of the policies he may be pursuing.” This could also be interpreted as, “We better keep our operations in the U.S. or we will be heavily fined by the new administration.”

Deciding which state may make the most sense, many companies logically look for less expensive, more business-friendly locations to relocate all or parts of their operations. However, if crossing the border is no longer an option due to penalties and political backlash, to which states should companies look when setting up satellite facilities? What are the best places for business in the United States?

In the article “America’s Top States for Business in 2016,” Scott Cohn, Special Correspondent for CNBC, identified ten metrics and weighted them to determine state rankings. These are:

·         Workforce (400 points)

·         Cost of Doing Business (350 points)

·         Infrastructure (350 points)

·         Economy (340 points)

·         Quality of Life (325 points)

·         Technology & Innovation (250 points)

·         Education (200 points)

·         Business Friendliness (160 points)

·         Cost of Living (75 points)

·         Access to Capital (50 points)

By using these metrics, Mr. Cohn was able to compile an ordered list of the top states in which to do business. The top 10 overall rankings for 2016 are:

1.       Utah

2.       Texas

3.       Colorado

4.       Minnesota

5.       North Carolina

6.       Washington

7.       Michigan

8.       Georgia

9.       Iowa

10.   Florida

To view the full list of all 50 states, as well as the scores for each individual metric, visit the CNBC article page.

Should your company be planning a move to a more business-friendly state, be sure to utilize an experienced relocation management company to make the most informed decision and to facilitate your mobile workforce. Global Mobility Solutions (GMS) has been a leader in relocation management since 1987, continuously delivering innovative programs and relocation technology along with award-winning customer service.

Before you move – or even develop your relocation policies – contact GMS for your complimentary benchmark study.

Accessibility by WAH

Looking for something?